Market Update
3:35 pm : It was a volatile session for crude oil, which posted a loss of 2.5% to finish at $86.11 per barrel. Crude oil rallied on the back of this morning's bearish inventory data, which showed a sizeable draw down versus expectations for a build. Futures, however, reversed off of highs at $89.69 and proceeded to trade back to the flat line, where they remained heading into the last 20 minutes of pit trade. Futures proceeded to fall on the back of the headlines pertaining to the euro zone and the role of the ECB, shedding approximately 2 points to trade to lows at $86.45 and ended just above that low. Natural gas posted a gain of 1.1% to settle at $3.59 per MMBtu. Futures rallied sharply heading into afternoon trade, notching highs at $3.63. They were unable to maintain that upward move and pulled back slightly into the close.
Precious metals pulled back heading into afternoon trade, after spending the majority of the morning chopping around the unchanged mark. Gold futures posted a decline of 0.4% to settle at $1647 per ounce, while silver shed 1.9% to end at $31.28 per ounce.DJ30 -71.29 NASDAQ -51.17 SP500 -14.79 NASDAQ Adv/Vol/Dec 661/1.6 bln/1862 NYSE Adv/Vol/Dec 882/680.6 mln/2151
3:00 pm : Stocks remain stuck near session lows as they enter into the final hour of the trading day. Despite the persistent pressure, participants are preparing for the next round of earnings reports. After the close, American Express (AXP 46.18, -0.50), eBay (EBAY 33.30, -0.57), Noble (NE 31.74, -0.66), and Stryker (SYK 49.36, +0.31) all report, along with a bevy of other names.DJ30 -73.07 NASDAQ -48.14 SP500 -15.11 NASDAQ Adv/Vol/Dec 660/1.33 bln/1840 NYSE Adv/Vol/Dec 880/540 mln/2090
2:30 pm : Stocks are descending deeper into negative territory with accelerating momentum. All three major equity averages are now at new session lows with marked losses. The drop still has a ways to go before it can fully offset the prior session's bounce, which actually undid a near 2% drop during trade on Monday.DJ30 -68.72 NASDAQ -50.50 SP500 -14.35 NASDAQ Adv/Vol/Dec 770/1.15 bln/1695 NYSE Adv/Vol/Dec 1135/465 mln/1820 The Fed just released its latest Beige Book, which indicated that economic activity continued to expand in September, although many districts described the the pace of growth as modest or slight. A weaker or less certain outlook for business conditions was also generally noted. There hasn't been much of a reaction to the report among market participants. DJ30 +29.33 NASDAQ -22.78 SP500 -3.03 NASDAQ Adv/Vol/Dec 870/1.09 bln/1570 NYSE Adv/Vol/Dec 1265/430 mln/1660
1:30 pm : The major equity averages continue to trade in varied fashion as this session's listless, lackluster action continues. That said, share volume has been solid, suggesting that there remains plenty of participation on the part of investors.DJ30 +42.20 NASDAQ -16.86 SP500 -1.58 NASDAQ Adv/Vol/Dec 1070/955 mln/1345 NYSE Adv/Vol/Dec 1540/385 mln/1360 1:00 pm : Trade has been choppy all session. The lack of direction comes amid a lack of leadership.
Financials surged 5% yesterday to drive broad market gains, but overall action in the sector has slowed down today, leaving the sector to trade near the neutral line. However, a better-than-expected quarterly report from Morgan Stanley (MS 16.82, +0.19) has the investment banking and brokerage outfit boasting a nice gain. Dow component and insurance giant Travelers (TRV 54.85, +3.39) is an even stronger performer, despite an earnings miss.
Apple (AAPL 405.24, -17.00) also came short of the consensus earnings estimate, a foul infrequently commited by the company in recent years. The stock's weight and weakness have the overall tech sector down 0.9%. Although shares of AAPL have kept the Nasdaq in the red all session, Intel (INTC 24.45, +1.05) and Yahoo! (YHOO 16.16, +0.69) are both providing support to the tech-rich Index.
Materials stocks are generally in the worst shape. The sector is currently down 1.3% as steel stocks and chemical plays come under sharp pressure. Even Freeport McMoRan (FCX 35.24, -0.14) has drifted into the red, despite a quarterly report that featured a bottom line beat.
A handful of homebuilder shares are up nicely after data indicated this morning housing starts for September increased at a much stronger clip than what had been generally expected. The rate registered in September was actually the highest since April 2010.
Consumer price data for September were also posted. Both overall prices and core prices increased in stride with what had been expected.
Coming up at 2:00 PM ET is the latest Beige Book from the Fed. DJ30 +45.30 NASDAQ -12.36 SP500 +0.45 NASDAQ Adv/Vol/Dec 960/875 mln/1425 NYSE Adv/Vol/Dec 1440/350 mln/1455
12:30 pm : Stocks continue to chop along without much leadership. The action, or lack thereof, has made for a rather unexciting day of trade. It has also kept Treasuries confined to a narrow trading range.DJ30 +22.93 NASDAQ -16.27 SP500 -1.71 NASDAQ Adv/Vol/Dec 870/805 mln/1485 NYSE Adv/Vol/Dec 1355/320 mln/1540
12:00 pm : Stocks have come under a bit of pressure in recent trade. That has the S&P 500 back in negative territory, although its loss is only marginal. Financials have had a rather choppy day after surging 5% in the prior session. A break in buying has left the sector to trade at the flat line, although it had been up with a solid gain a couple of hours ago. Morgan Stanley (MS 16.84, +0.21) has been a steady source of support whle many diversified bank stocks have faltered. Strength in the investment banking and brokerage outfit comes on the back of a better-than-expected quarterly report. DJ30 +14.91 NASDAQ -19.52 SP500 -1.93 NASDAQ Adv/Vol/Dec 1035/705 mln/1305 NYSE Adv/Vol/Dec 1615/285 mln/1255
11:30 am : Stocks are little changed from earlier levels. As such, the major equity averages continue to trade with varied results. Treasuries have had a rather quiet trading session. The lack of action has left the benchmark 10-year Note near the neutral line and kept its yield just a couple of basis points below 2.20%.
The dollar remains under pressure, however. Its weakness today comes as both the euro and the sterling pound push higher. The euro was recently quoted with a 0.4% gain at $1.379, while the pound is presently up 0.6% at $1.580. DJ30 +48.82 NASDAQ -8.51 SP500 +2.74 NASDAQ Adv/Vol/Dec 980/575 mln/1310 NYSE Adv/Vol/Dec 1545/235 mln/1305
11:00 am : The S&P 500 managed to attract some support at the 1220 line, allowing the broad market to work its way out of the red. The benchmark Index now sports a modest gain. The Dow has followed suit and has actually moved a nose ahead of its counterpart. The Nasdaq remains mired in the red, though. Its weakness comes as participants push against tech stocks after Apple (APPL 406.13, -16.11) failed to meet the consensus earnings estimate, let alone exceed it. Such a foul has occurred in only a few instances in recent years, resulting in a concerted selling effort that dropped the stock to a loss of more than 5%, which put shares on pace for one of their worst losses of the past two years. Although pressure has eased in the past hour, the stock is still on track for its poorest performance in two months. DJ30 +39.02 NASDAQ -8.93 SP500 +2.29 NASDAQ Adv/Vol/Dec 990/445 mln/1230 NYSE Adv/Vol/Dec 1625/185 mln/1150
10:35 am : Oil prices oscillated ahead of the open, but were able to start pit trade in positive territory. The energy component then struggled to sustain an established direction ahead of weekly inventory numbers, which were just posted. Crude oil inventories for the week ended October 14 showed a draw of 4.7 million barrels, which comes in stark contrast with the consensus call for a build of 2.0 million barrels. Oil prices responded by making a run above $89.50 per barrel, but they have since pulled back so that they now trade at $89.25 per barrel. That makes for a 0.8% gain. Elsewhere in the energy complex, natural gas prices are up 1.6% to $3.61 per MMbtu. The commodity has sported a strong gain all morning.
Action among precious metals has given gold a modest 0.3% gain, which puts the yellow metal at $1657.50 per ounce. Meanwhile, silver has surrendered its morning gain so that it now trades with a 0.2% loss at $31.77 per ounce. DJ30 +28.23 NASDAQ -11.34 SP500 +2.57 NASDAQ Adv/Vol/Dec 800/335 mln/1385 NYSE Adv/Vol/Dec 1325/140 mln/1380
10:00 am : Broad market action remains choppy. That has kept the S&P 500 not far from the neutral line. The Nasdaq has descended deeper into negative territory, though.
While tech stocks have declined to a collective loss of 1.4%, materials stocks are actually in the worst shape of any major sector. They're already down 2.0% as diversified chemicals plays, agricultural chemicals plays, and diversified metals and miners issues come under pronounced selling pressure.
Utilities have attracted strong buying interest as some participants show an increased apprehension toward risk taking. In turn, the sector is up in excess of 1%. DJ30 -15.66 NASDAQ -23.72 SP500 -4.55 NASDAQ Adv/Vol/Dec 820/115 mln/1150 NYSE Adv/Vol/Dec 1305/55 mln/1230
09:45 am : The Dow and S&P 500 are both stuck near the flat line, but the Nasdaq is lagging due to weakness in heavyweight Apple (AAPL 403.62, -18.62). That said, large-cap tech plays Yahoo! (YHOO 16.17, +0.70) and Intel (INTC 24.19, +0.79) are providing support. Overall, though, tech stocks are collectively down 1.0%, which makes them one of this morning's worst performing sectors.DJ30 -21.57 NASDAQ -16.37 SP500 -2.29 NASDAQ Adv/Vol/Dec NA/NA/NA NYSE Adv/Vol/Dec NA/NA/NA
09:15 am : S&P futures vs fair value: +1.60. Nasdaq futures vs fair value: -11.00. Stock futures point to a mixed start for today's trade. The muddled action comes amid conflicting reports about the willingness of eurozone leaders to increase the funds in the region's EFSF bailout plan. Those reports haven't dissuaded buyers from boosting Europe's major bourses, though. Buying continues in the wake of some relatively unsurprising news that Spain's debt was downgraded by analysts at Moody's. Earnings haven't exactly boosted confidence this morning. The latest report from Apple (AAPL) featured earnings that actually failed to meet what Wall Street had expected. However, fellow large-cap issues Intel (INTC) and Yahoo! (YHOO) both bested expectations for the bottom line. Investment banking and brokerage outfit Morgan Stanley (MS) also posted an upside surprise. Data today has featured tepid increases in consumer prices and an unexpectedly strong pickup in the pace of new home sales. Still on the economic calendar for today is the Fed's latest Beige Book, which will be posted at 2:00 PM ET.
09:05 am : S&P futures vs fair value: +2.00. Nasdaq futures vs fair value: -10.50. Oil prices are up 0.4% to $88.85 per barrel in the first few minutes of pit trade. Price action could pick up with weekly inventory numbers at 10:30 AM ET. Elsewhere in the energy complex, natural gas prices are up 1.4% to $3.60 per MMBtu. As for precious metals, gold prices are up 0.2% to $1656 per ounce, while silver prices are sporting a 0.7% gain at $32.05 per ounce. Overall action in the commodity complex has the CRB Commodity Index up 0.4% this morning.
08:35 am : S&P futures vs fair value: +2.70. Nasdaq futures vs fair value: -9.30. Action ahead of the open generally remains lackluster, but stock futures have reclaimed a few points following the latest dose of data. Overall consumer prices increased in September by 0.3%, just as had been expected among economists polled by Briefing.com. Core prices increased a mere 0.1%, which is slightly less than the consensus call for a tepid increase of 0.2%. Just yesterday it was learned that overall producer prices increased by 0.8% in September, while core producer prices increased by 0.2% for the month.
Separately, the pace housing starts climbed in September to an annualized clip of 658,000 from a downwardly revised 572,000 in the prior month. The consensus among economists polled by Briefing.com had called for a rate closer to 595,000 units for September. Meanwhile, building permits registered a rate of 594,000, which is less than the annualized rate of 625,000 recorded for the prior month and also less than the rate of 610,000 permits that had been generally expected.
08:05 am : S&P futures vs fair value: -0.10. Nasdaq futures vs fair value: -15.50. The stock market advanced 2% yesterday, but momentum from the move has failed to extend into premarket trade as participants question the validity of recent reports regarding a bigger bailout plan for Europe. That said, the euro is up 0.6% to $1.382 at the moment.
Meanwhile, earnings from Apple (AAPL) came short of the consensus estimate for one of the few times in recent history. The miss has shares of AAPL down about 5% this morning. In contrast, shares of both Intel (INTC) and Yahoo! (YHOO) are up more than 3% following upside surprises. Abbott Labs (ABT) boasts a gain on the order of 10% after it posted a bottom line beat of its own, but also announced plans to separate its core businesses.
Action has been quient among the more widely tracked commodities. In particular, crude oil prices are down only fractionally to $88.45 per barrel ahead of pit trade. Volatility could increase with the release of weekly inventory numbers at 10:30 AM ET.
Consumer price data are due at the bottom of the hour, along with monthly housing starts. Also on the economic calendar is the latest Beige Book, which will be released at 2:00 PM ET and is expected to be as exciting as its name suggests.
06:53 am : [BRIEFING.COM] S&P futures vs fair value: +6.40. Nasdaq futures vs fair value: -5.00.
06:53 am : Nikkei...8772.54...+30.60...+0.40%. Hang Seng...18309.22...+232.80...+1.30%.
06:53 am : FTSE...5461.15...+50.80...+0.90%. DAX...5949.30...+71.90...+1.20%.
In Play
3:53PM Alamo Group, Inc. acquires Tenco Group for CAD 6 mln in cash (ALG) 21.64 +0.17 : Co announced that effective yesterday it has acquired substantially all of the assets and business of Tenco Group, a Canadian based manufacturer and distributor of snow and ice removal equipment, for approximately CDN $6 mln in cash, plus the assumption of certain specified liabilities and subject to post closing adjustments. Co stated "Tenco's business is in-line with our acquisition strategy and we believe it will be accretive to Alamo's 2012 results."
3:41PM New lows across the board for stock indices -- Dow -105, S&P -18, Nasdaq Comp -59 (SPY) :
3:41PM Earnings Calendar (SUMRX) : Today after the close look for the following companies to report:
- EGHT, AXP, AMLN, AF, BWLD, CATY, CAKE, CRUS, CNS, COHU, CLB, CVA, CBST, CVBF, CYS, DTLK, ETFC, EWBC, EBAY, EW, FNF, FWRD, GHL, GLF, HNI, IEX, KMP, LRCX, LHO, MKSI, MCRI, NFX, NE, NVEC, PLCM, RJF, RVBD, SCSS, SLM, SPTN, STLY, SYK, TCBI, TSCO, UMPQ, WDC, WYNN, and XLNX.
- WFSL, KEY, ERIC, FRC, ADS, ALK, ALXN, BAX, BBT, BX, CBE, CSH, CY, DHR, DO, ECA, ESI, FITB, FNFG, GNTX, HBAN, HOMB, HUB.B, IIIN, IR, JNS, LH, LLY, LTM, MNRO, NOK, NTCT, NUE, NVR, NYT, ORB, PENN, PM, POOL, PPG, SASR, SNA, SYNT, T, TCB, TNB, TZOO, UNP, UTEK, WCC, CPX, FLIR, USG, OKSB, PCX, STL, WSO, AN, BSX, GMT, MHP, NBL, LUV, BGG, and KNSY.
3:29PM Demand Media reports that eHow.com website has recently experienced decline in traffic; believes was result of an internal technical issue (DMD) 5.92 -0.62 : Co announced that its eHow.com website has recently experienced a decline in traffic, which the Company believes is temporary and was the result of an internal technical issue. The technical issue has recently been remediated.
3:22PM TransCanada reports that twenty two House Democrats urge President Obama to ensure Keystone XL receives Presidential permit (TRP) 42.51 -0.46 :
3:09PM S&P -17 extends afternoon decline to second level support at 1208/1206 -- session low 1207 (SPY) : Second level support from The Technical Take has been probed in recent trade (congestion, 62% retrace of Tuesday rally). Minor supports below if unable to stabilize in this area are at 1203 and 1200.
3:06PM Apple back down probing the $400.00 level with the mkt on the lows; Gap down session lows below at $398.44 with the 20-day ema in that area at $398.79 (AAPL) 400.04 -22.15 :
3:03PM Fresh afternoon/session lows for Dow -77 and S&P -15, underperforming Nasdaq Comp -48 still holding above its afternoon low (SPY) :
2:46PM Index Change Reminder (INDXCH) : Franklin Electric (FELE) will replace Arch Chemicals (ARJ) in the S&P SmallCap 600 index after the close of trading on today.
2:36PM NYMEX Energy Closing Prices (COMDX) : Dec crude oil fell $2.23 to settle at $86.11, Nov natural gas ended higher by 4 cents to $3.59, Nov heating oil ended lower by 5 cents at $2.98, while Nov RBOB gasoline shed 8 cents to finish at $2.37.
2:28PM Final ~2 mins of trade and crude sell-off continues; now off $2.29 to $86.25 (COMDX) :
2:17PM Crude oil drops to lows at $87.31 heading into the close; now off $1.20 at $87.34 (COMDX) :
2:08PM Relative sector performance as stock indices hover near afternoon lows -- Dow -24, S&P -10, Nasdaq Comp -36 (SPY) : The Dollar Index has edged to a new day session high weighing on Energy/Commodity (OIH, XLE, XLB, SLX) with Networking IGN, Disk Drive also underperforming.
2:07PM ITT Industries announces final results and definitive prices for its debt tender offer (ITT) 44.83 -0.12 : Co announced the final results and definitive prices for its previously announced modified Dutch Auction cash tender offer for up to $100 mln aggregate principal amount of its 7.40% Debentures due 2025. As of the Expiration Date, ITT received tenders for $87,557,000.00 aggregate principal amount of the Debentures. All such Debentures have been accepted for purchase pursuant to the terms of the Offer. Payment for Debentures tendered and accepted for purchase is expected to be made today.
2:05PM Susquehanna Bank declared Q4 dividend of $0.03 per common share, prior $0.02 per common share (SUSQ) 6.36 +0.13 :
2:02PM FNB Shareholders approve acquisition of Bank of Granite Corporation (GRAN) (FNBN) 0.28 +0.01 : Shareholder approval is among the final contingencies for FNB's acquisition of Bank of Granite Corporation, which was approved by Granite stockholders on October 18. As previously announced, FNB has received the necessary regulatory approvals to complete the transactions. The proposed acquisition of Bank of Granite Corporation by FNB will create a North Carolina community bank with ~$2.8 bln in assets and $2.4 bln in deposits.
2:02PM Summit State Bank appoints Wayne Hoffer as Interim Chief Credit Officer (SSBI) 5.56 -0.01 : Summit State Bank's previous Chief Credit Officer, Guy Dana, has transitioned to pursue a new role outside of the bank. Summit State Bank is actively conducting a thorough search for a permanent Chief Credit Officer.
2:01PM Air Products signs second contract with Samsung Mobile Display to supply nitrogen and other gases for AMOLED production (APD) 84.24 -1.08 : This is the second contract of its type following last year's contract for SMD's 5.5 generation AMOLED.
1:37PM Chatham Lodging: Innkeepers reaches settlement with Cerberus and CLDT to acquire Innkeepers Hotels for ~$1 bln (CLDT) 10.58 +0.02 : Innkeepers USA Trust and its affiliates announced that they have reached an updated agreement with Cerberus Series Four Holdings, CLDT and other related parties that is supported by Innkeepers' constituents and clears the way for the sale of 64 Innkeepers hotels to a Cerberus-Chatham joint venture for ~$1.02 bln. The sales price yields an increase in value of ~$75 mln to creditors when compared to the baseline bid established for the May 2011 auction.1:33PM COMEX Metals Closing Prices (COMDX) : Gold ended lower by $5.80 at $1647.00, silver shed 60 cents to finish at $31.23, while copper lost a penny to close at $3.25 (all Dec contracts).
1:20PM Shaw Comms has reached a long term agreement with Bell Media (SJR) 20.84 +0.06 : Co announced today that is has reached a long term agreement with Bell Media covering 30 Canadian programming services including TSN, TSN2, RDS, Space and Discovery Channel.
1:19PM Brown & Brown announced earlier it voted to increase the quarterly cash dividend rate 6.25% to $0.085 per share (BRO) 20.00 +0.33 :
1:16PM CME Group begins clearing Euro-denominated interest rates swaps (CME) 361.94 +1.88 : Co announced that it has begun clearing Euro-denominated interest rate swaps. The company also announced $8 bln in U. S. customer volume cleared.
1:13PM Spectra Energy and Progress Energy Resources enter agreements on midstream services for montney production in British Columbia (SE) 28.06 +0.41 : Co announced the execution of multi-year agreements between Spectra Energy and Progress Energy Resources to provide a total 370 MMcf/d of natural gas gathering and processing services to support the development of Montney production in Progress' core development area in northeast British Columbia. The agreements provide for 210 MMcf/d of new service, in addition to the renewal of current contracts, which allows Spectra Energy to continue to provide natural gas gathering and processing to much of Progress' incremental production in the area.
1:04PM Over the past ~20 minutes natural gas futures have rallied approx ~6 cents to session highs at $3.63; now up 7 cents at $3.62 (COMDX) :
1:02PM KBW Regional Bank ETF displaying intraday relative strength, sets minor new session high (KRE) 22.12 +0.24 : Modest but steady push higher over last 45 minutes allows the KRE to set a minor new high of 22.14. Note that yesterday's high is also at 22.14 with last week's peak and the Sep high are at 22.26/22.29 -- BOH, CVBF, FMER, FULT, MBFI, ONB, PACW, SBNY, SIVB, UMPQ, WTFC, FNB, CBU, TCBI, CATY.
12:54PM Nymox Pharma: New 'positive' data on NX-1207 presented at symposium at American Urological Association meeting October 19 (NYMX) 9.20 +0.00 : According to the peer-reviewed abstract at the meeting, "Overall at 3 to 6 years after a single treatment of NX-1207, 37 to 55% of subjects required no surgical treatments or medication for their BPH. All Phase 2 follow-up study efficacy results reached statistical significance and there were no sexual side effects or significant adverse safety events attributable to study drug." NX-1207 is currently being studied in two pivotal Phase 3 clinical trials, NX02-0017 and NX02-0018, being conducted at approximately 70 urology clinics across the U.S. 12:48PM Semiconductor Hldrs ETF displaying intraday relative strength, sets new session high (SMH) 30.66 +0.16 : Steady push higher in midday trade with a new session high of 30.67. Edges above last wk/Tuesday highs at 30.63/30.64.
12:40PM Siemens AG: FDA clears Siemens fully automated Vitamin D Total assay for ADVIA Centaur Systems (SI) 100.86 -2.70 : The FDA has cleared the Vitamin D Total assay for use on the ADVIA Centaur/XP Immunoassay Systems, enabling laboratories to consolidate vitamin D testing with routine testing on a single, fully automated immunoassay platform. The assay, which is traceable to liquid chromatography-mass spectrometry, measures the total level of 25-hydroxyvitamin D in serum and plasma to aid in the assessment of vitamin D sufficiency. Measurement of [25(OH)D], the most widely used indicator of vitamin D status, ensures accurate evaluation of patients for deficiency, sufficiency, or toxicity.
12:21PM Cardinal Financial beats by $0.09, misses on net interest income (CFNL) 9.95 +0.06 : Reports Q3 (Sep) earnings of $0.29 per share, $0.09 better than the Capital IQ Consensus Estimate of $0.20; net interest income rose 10.4% year/year to $20.1 mln vs the $23.5 mln consensus. Tax equivalent net interest margin improved to 3.86% from 3.82%. The margin also improved from 3.84% for the second quarter of 2011. Loans held for investment grew to $1.515 billion, an increase of $164 million, or 12%, compared to September 30, 2010. Asset quality continues to be strong.
12:01PM Enterprise Products begins open season for proposed expansion of Texas NGL Pipeline System (EPD) 43.85 +0.36 : Co announced the start of a binding open season being conducted by Skelly-Belvieu Pipeline Company, a joint venture partially owned and operated by an Enterprise affiliate. The system originates in Carson County, Texas and transports purity products from the Mid-continent to Mont Belvieu, Texas, where Enterprise owns and operates approximately 100 million barrels of liquids storage capacity. The open season will begin October 19, 2011 at 12 noon CDT, and continue until 5 p.m. CST November 16, 2011.
12:01PM Freescale Semi licenses ARM Cortex-A7 and Cortex-A15 processor cores (FSL) 12.30 -0.40 : Co plans to incorporate ARM Cortex-A7 and Cortex-A15 processors in single-core and multicore i.MX devices that feature software and pin compatibility and target embedded, automotive infotainment and smart mobile device applications.
11:31AM First Interstate Bancsystem approved the appointment of Edward Garding as President and CEO, effective April 1, 2012. (FIBK) 11.72 -0.13 : Garding will replace President and CEO Lyle R. Knight, who is retiring effective April 1, 2012, after nearly 14 years with First Interstate BancSystem. Mr. Garding has served as Chief Operating Officer of First Interstate BancSystem since August 2010. 11:10AM China Natl Resources releases results of independent technical report; seven mines contained ~30.00 Mt of Proven and 181.17 Mt of Probable Coal Reserves (CHNR) 10.00 -0.18 : Co released the results of an Independent Technical Report prepared by Behre Dolbear Asia relating to the coal resources and reserves contained at seven coal mines located in Guizhou Province, the PRC, at which the Company holds mining rights. The Independent Technical Report concludes that the seven coal mines which are the subject of the Independent Technical Report hold ~127.88 million tonnes of Measured, 200.23 Mt of Indicated, and 83.47 Mt of Inferred in-situ Coal Resources conforming to the definitions in the 2004 edition of The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Included within the in-situ Coal Resources are ~30.00 Mt of Proved and 181.17 Mt of Probable Coal Reserves, also conforming to the JORC Code. The Independent Technical Report also concluded that the seven mines contained ~30.00 Mt of Proven and 181.17 Mt of Probable Coal Reserves, as such terms are used in rules and regulations promulgated by the Securities and Exchange Commission.
11:06AM Oil Service HOLDRS Trust tested/edging back from last week's high and its 50 ema at 122.34/122.57 -- session high 122.32 (OIH) 120.92 -0.15 : Some intraday Dollar Index upticks has been accompanied by intraday slippage in Energy/Commodity (OIH, XLE, GLD, SLV, GDX, SLX, XLB) in recent trade.
11:02AM Intuitive Surgical: Following earnings, stock continues to act strong as it begins to push up into fresh gap up high territory in ongoing all-time high territory (ISRG) 421.21 +38.23 :
11:01AM Nielsen and Carrier IQ announced an alliance to measure performance of mobile services, networks, and devices (NLSN) 28.10 -0.20 : 10:55AM Express Scripts: Walgreens (WAG) issues statement on Express Scripts-Walgreens arbitration hearing; confirms arbitrator denied requests for preliminary injunctive relief (ESRX) 40.87 +0.15 : On Sunday evening, October 16, the arbitrator in the Express Scripts-Walgreens matter issued a ruling denying the parties' requests for preliminary injunctive relief. The arbitrator will consider the underlying merits of the parties' claims at a future date.
10:54AM CEMEX S.A. announced earlier that it completed debt prepayment strategy (CX) 3.73 +0.15 : Co announced that, as a result of a prepayment made today, it has now reduced the initial exposure under its Financing Agreement by more than half (50.97%), or about US$7.66 billion. "With this payment, we have now met the final prepayment milestone under the Financing Agreement to avoid a 50-basis-point increase in our interest expense. In addition, we have addressed all maturities under the Financing Agreement until December 2013 and continue to comply with all of our financial obligations."
10:52AM China Xiniya Fashion announces that orders for its 2012 spring and summer collection increased by 26% following its biannual sales fair held in September 2011 (XNY) 1.85 +0.10 : Co announced that the total order value from its biannual sales fair held in September 2011 in Xiamen, China increased by 26% YoY. These orders are part of Xiniya's spring and summer offering and are expected to be delivered to its network of authorized retailers from January 2012.
10:40AM Wal-Mart hovering near its session high of 56.28 (WMT) 56.27 +0.38 : Note that last week/Oct is at 56.39 with the 52-wk peak from May at 56.47.
10:29AM Stock indices extend push off morning lows -- Dow +43, S&P +3.8, Nasdaq Comp -8.5 (SPY) : Relative sector strength has been noted in: Retail XRT, Housing XHB, Finance XLF, Oil Service OIH, Energy XLE.
10:24AM Underperforming Nasdaq Comp -15 stabilizes at first level support (QQQ) : Noted first level support in the 2638/2629 area in The Technical Take and have seen a first hour test/stabilization attempt (session low 2630).
10:15AM Brookfield Infrastructure entered into an agreement to increase the size of the offering (BIP) 24.90 -0.58 : Under the agreement, the syndicate of underwriters has agreed to purchase 16,843,500 L.P. units at a purchase price of $24.75 per Unit, for gross proceeds of ~$417 mln. In addition, Brookfield Asset Management (BAM) will purchase directly or indirectly an increased amount of ~7.2 mln redeemable partnership units of Brookfield Infrastructure's holding limited partnership at the Offering price (net of underwriting commissions) concurrent with the proposed public offering in order to maintain its ~30% interest in Brookfield Infrastructure on a fully exchanged basis. The aggregate gross proceeds of the Offering and the placement to Brookfield will be ~$588 mln. The Offering is expected to close on or about October 26, 2011.
10:04AM Apple gives up its early bounce attempt off of the $400.00 level as it begins to edge down and probe its 20-day ema near $398.65 (AAPL) 398.64 -23.53 :
10:04AM New session low for Nasdaq Comp -26, Dow -21 and S&P -4.8 hovering just above their lows (SPY) :
10:00AM Semiconductor Hldrs ETF mildly weaker (SMH) 30.38 -0.12 : Although a key component is up substantially (INTC +4.1%), the sector ETF is in the red. Weighing this morning are: LLTC -4.8%, SNDK -2.5%, ADI -2%, AMAT -1%, AMKR -1%, BRCM -2%, LSI -2.5%, MXIM -1.2%, TXN -1.7%, XLNX -1.7%. Short term support for the SMH if follow through is noted is at 30.15/30.05 (The Technical Take). Resistance above this wk/last wk highs (30.64/30.63) is at 30.85/30.90.
9:55AM Opening Point Gainers/Losers (TECHX) : Point Gainers: ISRG (+32.81), APOL (+4.57), ESI (+2.97), WFM (+2.83), DV (+2.33), DEO (+2.37), ABT (+2.48), LO (+2.15), TRV (+2.25), ULTA (+2.33), URI (+2.04), GS (+2.05), DVA (+1.77)
Point Losers: AAPL (-21.27), AEM (-9.18), BLK (-6.62), MTB (-5.33), AMZN (-5.02), NFLX (-4.94), ROC (-3.60), CKP (-3.64), SI (-3.09), ALV (-2.87), ALB (-1.12), VMW (-2.23)
Point Losers: AAPL (-21.27), AEM (-9.18), BLK (-6.62), MTB (-5.33), AMZN (-5.02), NFLX (-4.94), ROC (-3.60), CKP (-3.64), SI (-3.09), ALV (-2.87), ALB (-1.12), VMW (-2.23)
9:53AM Linear Tech hit hard after reporting, pulls back to its 50 ema at 29.43 -- session low 29.45 (LLTC) 49.52 -1.48 :
9:51AM Ford Motor confirmed new national labor agreement ratified by UAW-represented employees in the U.S. (F) 11.72 -0.06 : The agreement covering approximately 41,000 employees improves the company's competitiveness in the U.S. Ford is adding 12,000 hourly jobs in its U.S. manufacturing facilities through the four-year term of the contract, including in-sourcing work from Mexico, China and Japan. The company also is investing $16 billion in its U.S. product development and manufacturing operations - including $6.2 billion in plant-specific investments - by 2015.
9:39AM Financial Select Sector SPDR firmer, hovering near this wk/last wk highs at 12.95/12.96 (XLF) 12.95 +0.16 :
9:38AM Apollo Group paces Education higher after reporting (APOL) 48.22 +4.89 : CECO +8%, ESI +8.4%, DV +7.3%, COCO +3.7%, LOPE +3.3%, CPLA +3.1%, LINC +2.9%, STRA +2.8%.
9:34AM Apple gaps down hold near psych level and 20 day near 400 -- session low 399.51 (AAPL) 404.13 -18.19 :
9:33AM Markel Corp unit acquired a majority interest in WI Holdings (MKL) 371.89 +1.49 : Weldship manufactures, leases and sells high pressure tube trailers, certified ISO containers and other gas and liquid containers to industrial gas manufacturers, independent distributors, specialty chemical companies and the United States Government for use in the domestic and international compressed gas, electronic gas and specialty chemical industries.
9:33AM Nutrisystem names Mike Amburgey, as New Chief Marketing Officer (NTRI) 13.18 : Most recently, Amburgey was the Chief Marketing Officer for the Oreck Corporation. Prior to that he was based in Washington State, where he served as Vice President of Marketing and Direct Response Sales for the Bowflex and Schwinn Fitness businesses of Nautilus (NLS)
9:32AM Apricus Biosciences announces issuance of Korean patent for topical cream (APRI) 4.17 : Co announced today that the Korean Patent Office recently issued a Notice of Allowance to grant a patent for the co's development of a topical cream utilizing vasoactive prostaglandin E to treat premature ejaculation, When issued, the patent, entitled, "Compositions and Methods for the Treatment of Premature Ejaculation," will provide Korean patent protection until March 2024. It is one in a series of issued patents and pending applications that Apricus Bio owns in the male sexual dysfunction field utilizing its proprietary NexACT technology, which includes its Vitaros product to treat erectile dysfunction, among others in research and development.
9:31AM MHI Hospitality has successfully executed a new $8.0 million secured loan with Premier Bank (MDH) 2.14 0.00 :
9:30AM Apple: Following earnings, stock gaps lower to challenge the $400.00 level right off the open (AAPL) 400.30 -21.90 : Note that the 20-day ema is just below near $399.00.
9:29AM Coldwater Creek prices offering of 26,500,000 shares of its common stock at $0.85 per share (CWTR) 1.11 :
9:23AM On The Wires (WIRES) :
- Intellectual Ventures announced that it has entered into a license agreement with American Express (AXP).
- Amazon.com (AMZN) announced an expansion of a licensing agreement with PBS Distribution that will allow Amazon Prime members to instantly stream, at no additional cost, current and archived PBS programming.
- MAA (MAA) announced that it has completed the acquisition of Aventura at Indian Lake Village, a 300-unit apartment community located in the Nashville metropolitan statistical area.
- Online Resources (ORCC) announced that $1.1 bln asset American Heritage Federal Credit Union has signed a multi-year agreement for the Company's Architect retail banking software solution.
- Rubicon Minerals (RBY) announced development and exploration plans for the following twelve months at its 100% owned Phoenix Gold Project. The plans are designed to both maintain the co on its path of development to support possible production in Q4 2013 and also to optimize its current positive PEA1, which was filed in August, 2011.
9:19AM Wi-LAN raises all cash offer to acquire MOSAID to $42.00/share (WILN) 6.11 : Co announced that it has increased its fully funded all cash Offer to acquire MOSAID Technologies Incorporated by 11% to $42.00/share. The offer will remain open until 5:00 pm Eastern time on November 1, 2011. WiLAN has no intention to further revise or extend its Revised Offer. The Revised Offer is not subject to any financing contingencies. WiLAN will finance the Revised Offer through cash on hand and previously arranged financing.
9:13AM Gold futures spiking; move does not correlate with any movement in the dollar (COMDX) :
9:05AM NCR Corp and Empower Software Solutions entered into a customer referral agreement (NCR) 18.25 +0.23 :
9:04AM Caterpillar: The European Commission approves Caterpillar acquisition of MWM (CAT) 84.65 : The EC clearance is the last major regulatory requirement needed for the acquisition to be completed, and the transaction is expected to close before year end. The transaction is valued at euro 580 million (approximately $800 million) and will be paid in cash.
9:02AM Biolase Technology CFO Frederick Furry to add Chief Operating Officer role, effective immediately (BLTI) 3.57 :
9:02AM Biomimetic Therapeutics receives approval to commercialize augment bone Graft in Australia (BMTI) : Co announced that the Therapeutic Goods Administration has approved the Company's medical device application for Augment Bone Graft clearing the way for commercialization of the product in Australia and its listing on the Australian Register of Therapeutic Goods. Based on the clinical data from the North American pivotal trial and Canadian registration trial evaluating Augment Bone Graft, the product has been approved in Australia for use as an alternative to autograft, the current gold standard in bone grafting, in hindfoot and ankle fusion procedures.
8:59AM Green Mtn Coffee outlined earlier its plans for continued growth in Vermont (GMCR) 82.11 : GMCR expects to renovate the existing facility at Waterbury Center , which will house its new beverage research and development efforts as well as other support functions. In Essex, GMCR is taking new space and planning a major capacity expansion at its existing production facility. By the fall of 2012, the Company expects to occupy the building at 5 New England Drive, currently occupied by Gardner Supply, which will be relocating.
8:52AM TEKELEC sees Q3 EPS, rev above consensus; expects to raise FY11 guidance along with Q3 report (TKLC) 7.50 : Co issues upside guidance for Q3 (Sep), sees EPS of $0.16-0.20, excluding non-recurring items, vs. $0.05 Capital IQ Consensus Estimate; sees Q3 (Sep) revs of $103-106 vs. $93.73 mln Capital IQ Consensus Estimate; orders $66-68 mln. The co received a Diameter Signaling Router related order in the amount of ~$20 million in early October which was previously expected to be received in the third quarter. This order represents the single largest Broadband Network Solutions order in the co's history and the Company believes it demonstrates the continued traction the co's products are gaining in the early adoption phase of DSR technology. Co also announces that it expects to raise its FY11 guidance when it reports Nov 9.
8:43AM On The Wires (WIRES) :
- Ligand Pharmaceuticals (LGND) announced that it has entered into a Captisol license agreement with SAGE Therapeutics for the development and commercialization of Captisol-enabled therapeutics for a broad range of debilitating central nervous system conditions.
- Marvell (MRVL) announced Samsung has launched the new S5820, a China 3G TD-SCDMA Android smartphone for China Mobile (CHL).
- Brightpoint (CELL) announced that its subsidiary, Brightpoint Middle East FZE has entered into an agreement with Microsoft Middle East and Africa to launch a dedicated Windows Phone Online Shop servicing the Middle East and Africa.
- CareFusion (CFN) issued the following update regarding its recall of 128 EnVe ventilators affecting 29 customers. The FDA has classified this action as a Class I recall.
- Digital Realty Trust (DLR) has entered into a 50/50 joint venture partnership with Clise Properties, Inc. to redevelop a six-story parking garage to include four floors of data center space.
- Bancolombia (CIB) announced that it has extended until October 27, 2011 its offer to exchange up to $1 bln principal amount of its 5.950% Senior Notes due 2021 and up to $520 million principal amount of its 4.250% Senior Notes due 2016.
- MICROS Systems (MCRS) announced that over 150 Zaxby's locations have deployed MICROS's myinventory to better manage and control in-store inventories.
- Smith & Wesson Holding (SWHC) announced that it has been awarded firearm contracts in Texas from the Austin Police Department and from the San Antonio Police Officers Association.
- Science Applications (SAI) announced it was awarded a contract by the National Institute of Allergy and Infectious Diseases, part of the National Institutes of Health. The contract was funded $1.9 mln at the end of fiscal year 2011. The total funding could be up to $102 million over the ten year period of performance, subject to availability of annual appropriations.
- Campbell Soup (CPB) announced that it has entered into a Power Purchase Agreement and Land Lease Agreement with American Capital Energy to construct a 2.3 mega-Watt capacity PV solar power generation ground mount tracker system on 14 acres of the company's facility in Sacramento, Calif., which supplies Campbell's soups, sauces and beverages to ten western states and the Far East.
- Ariba (ARBA) announced that it has closed the acquisition of b-process, a privately-held provider of France's largest electronic invoice network and one of the largest e-invoicing networks in Europe.
- IPC The Hospitalist (IPCM) announced that it has acquired five small practices in several of the Company's existing markets.
- Vringo (VRNG) announced that the U.S. Patent and Trademark Office has issued the Company a new patent covering aspects of its mobile video and mobile personalization technologies.
- The U.S. Marine Corps Systems Command, Global Combat Support Systems-Marine Corps has awarded CGI Federal a wholly-owned U.S. operating subsidiary of CGI Group (GIB) a contract renewal worth $20.16 mln over a five year period to provide post-deployment software support for the Storage Retrieval Automated Tracking Integrated System.
- Campbell Soup (CPB) announced that it has entered into a Power Purchase Agreement and Land Lease Agreement with American Capital Energy to construct a 2.3 mega-Watt capacity PV solar power generation ground mount tracker system.
- IPC The Hospitalist (IPCM) announced that it has acquired five small practices in several of the Company's existing markets.
- Badger Licensing announced that it was awarded a contract by Lihuayi Weiyuan Chemical to provide its proprietary technology for a 300,000 metric tons per annum grassroots cumene plant in Dongying City, Shandong Province, People's Republic of China. Badger Licensing is a venture of affiliates of The Shaw Group (SHAW) and ExxonMobil (XOM).
8:36AM Atlas Air Worldwide and Polar Air Cargo Worldwide finalize new labor agreement with pilots (AAWW) 35.59 : Co announced that it has completed a new, five-year collective bargaining agreement with pilots and flight engineers of Atlas Air and Polar Air Cargo Worldwide. The agreement, which is effective from September 2011, completes the merger of the Atlas and Polar crew forces into a single collective bargaining unit with an integrated seniority list. Under the terms of the new agreement, both pilot groups will be brought to
parity with each other and work from a single contract.
parity with each other and work from a single contract.
8:35AM Quaterra and 50% joint-venture partner Blackberry Ventures announced assay results from 15 core holes of 4,209 meters of drilling completed between July and September 2011 at their Nieves silver property (QMM) 0.89 : Four holes tested the western limit of the Concordia vein, nine holes tested the western Santa Rita vein, and two holes tested for extensions of the California vein.
8:34AM Core-Mark announces its first quarterly dividend of $0.17/share (CORE) 33.50 :
8:33AM Marina Biotech demonstrates in vivo dose-dependent efficacy and high tolerability with a CRN-Substituted miRNA antagonist (MRNA) 0.17 : Co reported in vivo dose-dependent efficacy with a CRN-substituted miRNA antagonist, or antagomir, against microRNA-122 (miR-122). The efficacy in a rodent model was demonstrated by up to a 5-fold increase in AldoA. Downstream targets Glycogen Synthase I (GYS1) and Solute Carrier Family 7 member 1 (SLC7A1) were also elevated. The increase in these downstream gene targets was achieved by the sequestration of miR-122 by a high affinity CRN-substituted antagomir. In addition, the CRN-substituted antagomir, which was dosed for three consecutive days at up to 50 mg/kg/day, was extremely well tolerated in rodents as evidenced by normal serum chemistry parameters and no body weight changes.
8:32AM SEI Investments misses by $0.02, misses on revs (SEIC) 15.45 : Reports Q3 (Sep) earnings of $0.27 per share, $0.02 worse than the Capital IQ Consensus Estimate of $0.29; revenues rose 6.2% year/year to $233.2 mln vs the $237.4 mln consensus.
8:31AM Global Partners reaffirmed 2011 EBITDA guidance of $75-$85 mln as well as anticipated 2012 expense reductions of $10-12 mln (GLP) 15.18 :
8:29AM NASDAQ OMX announces results of tender offer for 2.50% convertible senior notes (NDAQ) 25.07 : Co announced the expiration of its previously announced tender offer to purchase for cash any and all of its outstanding 2.50% Convertible Senior Notes due 2013 which occurred at 12:00 midnight New York City time on October 18, 2011. The depositary for the tender offer has advised NASDAQ OMX that an aggregate principal amount of ~$334 mln of the outstanding Convertible Notes were validly tendered in the tender offer and not validly withdrawn prior to the expiration of the tender offer. Tenders of the Convertible Notes represented 78.26% of the Convertible Notes outstanding.
8:20AM Arabian American Developmnt announces that based on its preliminary financial review, it expects to report record quarterly revenues and volume for the quarter ended Sept 30, 2011 (no ests) (ARSD) 3.66 :
8:11AM Popular misses by $0.03 (BPOP) 1.81 : Reports Q3 (Sep) earnings of $0.03 per share, $0.03 worse than the Capital IQ Consensus Estimate of $0.06. The decrease in net interest income of $5.2 million for the third quarter of 2011 was mainly a combination of lower volume and yields on loans and investment securities, partially offset by lower levels and funding costs of deposits and borrowings. The net interest margin decreased from 4.48% for the second quarter of 2011 to 4.45% for the third quarter of 2011. Excluding covered loans, the allowance for loan losses to loans held-in-portfolio ratio stood at 3.35% at September 30, 2011, almost unchanged when compared to 3.34% at June 30, 2011. TBV $3.17; "In Puerto Rico, where we have a uniquely valuable franchise, the credit environment remains uneven. While we have seen improvement in some of our portfolios, we increased our provisions for the commercial portfolio. In the U.S., we exceeded our expectations with another quarter of steady net interest income and lower funding costs in the midst of improving credit conditions."
8:08AM Supervalu beats by $0.07, reports revs in-line; narrows FY12 EPS guidance, lowers revs guidance (SVU) 8.17 : Reports Q2 (Aug) earnings of $0.28 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.21; revenues fell 2.6% year/year to $8.43 bln vs the $8.36 bln consensus. Co sees FY12 EPS of $1.20-1.30, prior $1.20-1.40 vs. $1.22 Capital IQ Consensus Estimate; sees FY12 revs of ~$36.5 bln, prior ~$37 bln vs. $36.51 bln Capital IQ Consensus Estimate. The 2012 guidance includes the following assumptions: Net sales for the 52-week fiscal year are estimated to be ~$36.5 bln compared to $37 bln previously, reflecting the sale of a number of company-owned fuel centers, as well as lower sales in the Independent Business segment attributable to the timing of planned new business. Sales in the independent business segment are expected to be down ~3.5 percent to 4.5 percent from fiscal 2011; Identical store sales growth, excluding fuel, is projected to be in the range of negative 2.0 percent to negative 2.5 percent; Capital spending is projected to be ~$700 to $725 mln, which will include 80 to 90 store remodels. Save-A-Lot will increase its store count by ~80 to 90 stores, including licensed locations; Debt reduction is estimated to be ~$525 to $550 mln.
8:07AM Nuance Communications prices $600 mln offering of 2.75% senior convertible debentures (NUAN) 23.49 : Co announced the pricing of an offering of 600.0 mln aggregate principal amount of its 2.75% senior convertible debentures due 2031. The Debentures are being offered to qualified institutional buyers The sale of the Debentures is expected to close on October 24, 2011, subject to the satisfaction of customary closing conditions. Nuance has granted the initial purchasers a 30-day option to purchase up to an additional $90.0 mln aggregate principal amount of Debentures on the same terms and conditions to cover over-allotments. Notes to be net share settled upon conversion. Proceeds to be used for concurrent share repurchases, potential acquisitions and general corporate purposes.
8:07AM Diamondrock Hospitality reports FFO in-line, revs in-line; guides FY11 FFO below consensus (DRH) 8.10 : Reports Q3 (Sep) funds from operations of $0.16 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.16; revenues rose 18.5% year/year to $179 mln vs the $178.9 mln consensus. Co issues downside guidance for FY11, sees FFO of $0.63-0.65 vs. $0.66 Capital IQ Consensus Estimate.
8:07AM New York Community reports EPS in-line (NYB) 12.87 : Reports Q3 (Sep) earnings of $0.27 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.27. Assets totaled $42.0 billion at September 30, 2011, up $1.4 bln from the June 30th balance and $778.3 mln from the balance at December 31, 2010. In the third quarter of 2011, the Company recorded a provision for losses on non-covered loans of $18.0 mln, up $3.0 mln on a linked-quarter basis and down $14.0 mln year-over-year. Non-performing non-covered loans declined $86.1 mln, or 17.1%, linked-quarter to $416.8 mln at September 30, 2011, and were down $317.9 mln, or 43.3%, from the peak at March 31, 2010. Non-performing non-covered loans represented 1.44% of total loans at the end of September, down 32 basis points linked-quarter and 117 basis points since the peak at March 31, 2010. Net charge-offs declined $13.7 mln, or 51.2%, to $13.1 mln over the course of the quarter, and the ratio of net charge-offs to average loans improved five basis points to 0.04%.
8:04AM Knoll beats by $0.07, beats on revs (KNL) 15.84 : Reports Q3 (Sep) earnings of $0.39 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.32; revenues rose 18.5% year/year to $239.5 mln vs the $233.8 mln consensus. "Despite the current economic uncertainty, we continued to both improve our operating performance and strengthen our balance sheet. Operating margin is over 10%, our bank leverage ratio is now below 2:1 and our all bank revolver debt is at a 10 year low."
8:04AM Visa increases dividend to $0.22/share from $0.15/share (V) 93.86 :
8:03AM Vertex Pharm announced the submission of a New Drug Application to the FDA for KALYDECO (VRTX) 40.94 : Co announced the submission of an NDA to the FDA for KALYDECO, a medicine in development that targets the defective protein that causes cystic fibrosis. KALYDEC was studied among people with CF ages 6 and older who have at least one copy of the G551D mutation in the cystic fibrosis transmembrane conductance regulator gene. In the United States, ~4% of people with CF are estimated to have at least one copy of the G551D mutation in the CFTR gene.
8:03AM Amphenol beats by $0.03, beats on revs; guides Q4 EPS below consensus, revs below consensus (APH) 44.10 : Reports Q3 (Sep) earnings of $0.81 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.78; revenues rose 9.0% year/year to $1.03 bln vs the $1.01 bln consensus. Co issues downside guidance for Q4, sees EPS of $0.69-0.71 vs. $0.79 Capital IQ Consensus Estimate; sees Q4 revs of $920-940 mln vs. $1.01 bln Capital IQ Consensus Estimate. "In the past month, global markets have been impacted by a higher level of uncertainty surrounding fiscal and budgetary issues in most developed economies. As a result, we have begun to see increased levels of caution from many of our customers, translating into lower demand in most markets. In addition, we do not expect a continuation in the fourth quarter of the increased demand levels in the Mobile Devices market that we experienced in the third quarter."
8:03AM Piper Jaffray misses by $0.39, misses on revs (PJC) 20.18 : Reports Q3 (Sep) loss of $0.23 per share, $0.39 worse than the Capital IQ Consensus Estimate of $0.16; revenues fell 15.7% year/year to $98.2 mln vs the $110.2 mln consensus. With regard to the Q, co states: "Increased volatility and uncertainty surrounding macro issues weighed heavily on the capital markets during the third quarter, resulting in significantly lower performance for our firm."
8:00AM Summer infant announces hire of new COO David Hemendinger (SUMR) 7.20 : Co announced the hire and appointment of David Hemendinger as COO. In this new position, Hemendinger will be responsible for providing the vision, leadership, and management necessary to ensure that the company has the operational infrastructure in its Information Systems and Supply Chain to effectively and efficiently support Summer Infant's business and growth initiatives. Hemendinger replaces former COO Jeffery Hale, who left the employ of the Company on October 13, 2011. David has worked at companies such as Lifespan Inc and C.R. Bard (BCR)
7:47AM Abbott Labs beats by $0.01, beats on revs; narrows FY11 EPS, just above consensus (ABT) 52.44 : Reports Q3 (Sep) earnings of $1.18 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $1.17; revenues rose 13.2% year/year to $9.82 bln vs the $9.65 bln consensus, including a favorable 5.3 percent effect of foreign exchange. Proprietary Pharmaceuticals sales increased 13.5% in the quarter. Durable Growth Business sales increased 15.3%, including double-digit growth in Nutritionals, Established Pharmaceuticals, Core Laboratory Diagnostics and Diabetes Care. Innovation-Driven Device Business sales increased 6.0 percent, including double-digit growth in Molecular Diagnostics. Emerging markets sales were $2.6 billion, up 21.0% YoY and representing 26.1% of total sales, with strong growth across all of Abbott's operating divisions. The gross margin ratio was 60.4% in the third quarter, above Abbott's previous guidance, driven by favorable product mix. Co narrows guidance for FY11 slightly above consensus, narrows EPS to $4.64-4.66 from $4.58-4.68 vs. $4.63 Capital IQ Consensus Estimate.
7:46AM Northern Trust reports EPS in-line, beats on revs (NTRS) 38.78 : Reports Q3 (Sep) earnings of $0.70 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.70; revenues rose 9.2% year/year to $971.5 mln vs the $961.2 mln consensus.
Noninterest income, which represented 74% of revenue, increased $58.7 million, or 9%, to $714.7 million from the prior year quarter's $656.0 million. Trust, investment and other servicing fees, which represented 57% of revenue, were $555.3 million in the current quarter compared to $518.7 million in the prior year quarter, an increase of $36.6 million, or 7%.
Trust, investment and other servicing fees from Corporate & Institutional Services (C&IS) increased $17.7 million, or 6%, and totaled $310.9 million compared to the prior year quarter's $293.2 million. The increase in C&IS trust, investment and other servicing fees primarily reflects recent acquisitions, new business, and improved markets, partially offset by a decrease in securities lending revenue. The 29% increase in C&IS custody and fund administration fees, the largest component of C&IS fees, primarily reflects the recent acquisitions, new business, and improved markets. C&IS investment management fees for the current quarter benefited from new business and improved markets, partially offset by waived fees in money market mutual funds due to the persistent low level of short-term interest rates. Money market mutual fund fee waivers in C&IS totaled $10.1 million in the current quarter compared with $2.5 million in the prior year quarter.
Average earning assets for the quarter increased $17.5 billion, or 26%, to $84.4 billion from the prior year quarter, and net interest margin declined to 1.25%, down from 1.44% in the prior year quarter. The balance sheet grew primarily due to an increase in non-U.S. office interest-bearing deposits which were invested primarily in lower yielding investment securities, Federal Reserve deposits, and interest-bearing deposits with banks.
Noninterest income, which represented 74% of revenue, increased $58.7 million, or 9%, to $714.7 million from the prior year quarter's $656.0 million. Trust, investment and other servicing fees, which represented 57% of revenue, were $555.3 million in the current quarter compared to $518.7 million in the prior year quarter, an increase of $36.6 million, or 7%.
Trust, investment and other servicing fees from Corporate & Institutional Services (C&IS) increased $17.7 million, or 6%, and totaled $310.9 million compared to the prior year quarter's $293.2 million. The increase in C&IS trust, investment and other servicing fees primarily reflects recent acquisitions, new business, and improved markets, partially offset by a decrease in securities lending revenue. The 29% increase in C&IS custody and fund administration fees, the largest component of C&IS fees, primarily reflects the recent acquisitions, new business, and improved markets. C&IS investment management fees for the current quarter benefited from new business and improved markets, partially offset by waived fees in money market mutual funds due to the persistent low level of short-term interest rates. Money market mutual fund fee waivers in C&IS totaled $10.1 million in the current quarter compared with $2.5 million in the prior year quarter.
Average earning assets for the quarter increased $17.5 billion, or 26%, to $84.4 billion from the prior year quarter, and net interest margin declined to 1.25%, down from 1.44% in the prior year quarter. The balance sheet grew primarily due to an increase in non-U.S. office interest-bearing deposits which were invested primarily in lower yielding investment securities, Federal Reserve deposits, and interest-bearing deposits with banks.
7:41AM Abbott Labs announced that it plans to separate into two publicly traded companies, one in diversified medical products and the other in research-based pharmaceuticals (ABT) 52.44 : Co announced that it plans to separate into two publicly traded companies, one in diversified medical products and the other in research-based pharmaceuticals. The diversified medical products company will consist of Abbott's existing diversified medical products portfolio, including its branded generic pharmaceutical, devices, diagnostic and nutritional businesses, and will retain the Abbott name. The research-based pharmaceutical company will include Abbott's current portfolio of proprietary pharmaceuticals and biologics and will be named later... The transaction is intended to take the form of a tax-free distribution to Abbott shareholders of a new publicly traded stock for the new pharmaceutical company. The expected stock distribution ratio will be determined at a future date. It is expected that the two companies will each pay a dividend that, when combined, will equal the current Abbott dividend at the time of separation... This announcement will not impact Abbott's ongoing earnings-per-share guidance for 2011.
7:38AM On The Wires (WIRES) :
- Amicus Therapeutics (FOLD) announced that patient recruitment has closed in the first Phase 3 global registration study of Amigal for Fabry disease.
- IMAX Corp (IMAX) announced that Blue Sky World Entertainment signed an agreement to install a digital IMAX theatre system at the 20th Century Plaza in Nairobi, Kenya.
7:33AM St. Jude Medical beats by $0.02, misses on revs; guides Q4 EPS below consensus; guides FY11 EPS in-line (STJ) 37.34 : Reports Q3 (Sep) earnings of $0.78 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.76; revenues fell 88.8% year/year to $138.6 mln vs the $1.37 bln consensus. Co issues downside guidance for Q4, sees EPS of $0.83-0.85, excluding non-recurring items, vs. $0.86 Capital IQ Consensus Estimate. Co issues in-line guidance for FY11, sees EPS of $3.26-3.28, excluding non-recurring items, vs. $3.27 Capital IQ Consensus Estimate.
7:24AM Morgan Stanley reports Q3 (Sep) results, DVA adds $3.4 bln in revs and $1.12 to EPS (MS) 16.63 : Reports Q3 (Sep) earnings of $1.14 per share, may not be comparable to the Capital IQ Consensus Estimate of $0.32; revenues rose 45.6% year/year to $9.9 bln vs the $7.25 bln consensus. Results included revenues of $3.4 Billion, or $1.12 per diluted share, from the widening of Morgan Stanley's debt-related credit spreads.
The Firm's compensation expense for the current quarter was $3.7 billion with a compensation to net revenue ratio of 37%. This ratio was affected by DVA which increased net revenues in the current period. Non-compensation expenses of $2.5 billion reflected higher levels of business activity and costs associated with the U.K. bank levy.
Investment Banking revenues were $864 million. Sales and trading net revenues were $5.4 billion and included positive revenue of $3.4 billion related to DVA. Global Wealth Management Group delivered net revenues of $3.3 billion, with net new assets for the quarter of $15.5 billion, a record since the inception of the Morgan Stanley Smith Barney joint venture (MSSB), and net flows in fee-based accounts of $10.1 billion. Morgan Stanley successfully completed its inaugural offering of JPY 46.5 billion (approximately $600 million) Uridashi bonds leveraging the strength of our partnership with Mitsubishi UFJ Financial Group, Inc. (MUFG).
Advisory revenues of $413 million increased 11% from a year ago reflecting higher levels of completed activity. Underwriting revenues of $451 million declined 29% from last year's third quarter on lower levels of market activity. Equity underwriting revenues of $239 million declined 8% from a year ago. Fixed income underwriting revenues of $212 million declined 44% from last year's third quarter primarily reflecting lower high yield and investment grade bond issuance volumes.
Fixed Income and Commodities sales and trading net revenues were $3.9 billion and included positive revenue of $2.8 billion related to DVA. Equity sales and trading net revenues were $2.0 billion and included positive revenue of $620 million related to DVA. Results in the cash and derivatives businesses reflected high levels of client activity and market volumes. Other sales and trading net losses of $443 million, primarily reflected writedowns associated with corporate lending activity. Morgan Stanley's average trading Value-at-Risk measured at the 95% confidence level was $130 million compared with $145 million in the second quarter of 2011 and $142 million in the third quarter of the prior year.
The Firm's compensation expense for the current quarter was $3.7 billion with a compensation to net revenue ratio of 37%. This ratio was affected by DVA which increased net revenues in the current period. Non-compensation expenses of $2.5 billion reflected higher levels of business activity and costs associated with the U.K. bank levy.
Investment Banking revenues were $864 million. Sales and trading net revenues were $5.4 billion and included positive revenue of $3.4 billion related to DVA. Global Wealth Management Group delivered net revenues of $3.3 billion, with net new assets for the quarter of $15.5 billion, a record since the inception of the Morgan Stanley Smith Barney joint venture (MSSB), and net flows in fee-based accounts of $10.1 billion. Morgan Stanley successfully completed its inaugural offering of JPY 46.5 billion (approximately $600 million) Uridashi bonds leveraging the strength of our partnership with Mitsubishi UFJ Financial Group, Inc. (MUFG).
Advisory revenues of $413 million increased 11% from a year ago reflecting higher levels of completed activity. Underwriting revenues of $451 million declined 29% from last year's third quarter on lower levels of market activity. Equity underwriting revenues of $239 million declined 8% from a year ago. Fixed income underwriting revenues of $212 million declined 44% from last year's third quarter primarily reflecting lower high yield and investment grade bond issuance volumes.
Fixed Income and Commodities sales and trading net revenues were $3.9 billion and included positive revenue of $2.8 billion related to DVA. Equity sales and trading net revenues were $2.0 billion and included positive revenue of $620 million related to DVA. Results in the cash and derivatives businesses reflected high levels of client activity and market volumes. Other sales and trading net losses of $443 million, primarily reflected writedowns associated with corporate lending activity. Morgan Stanley's average trading Value-at-Risk measured at the 95% confidence level was $130 million compared with $145 million in the second quarter of 2011 and $142 million in the third quarter of the prior year.
7:20AM On The Wires (WIRES) :
- Hydrogenics (HYGS) announced that it was awarded a contract to deliver and install a 1MW HySTAT electrolyzer in an industrial scale renewable energy storage project, the largest of its kind in Germany.
- Level 3 Communications (LVLT) announced that it has been selected by N24, a major German television news broadcaster, to provide content delivery network services.
- Juniper Networks (JNPR) and Abu Dhabi Airports Company announced that ADAC has awarded Juniper Networks with a 10-year infrastructure frame contract to support an aggressive expansion program designed to transform Abu Dhabi Airports into world-class facilities.
- Yandex (YNDX) announced that it has launched a new map service for Turkey.
- Sharps Compliance (SMED) announced that it has been awarded another Patient Support Program by a leading pharmaceutical manufacturer which is a key provider in its therapeutic category.
- Acacia Research (ACTG) announced that its Greenlight Technologies subsidiary has entered into a settlement and license agreement with X10 Wireless Technology. The settlement and license agreement resolves litigation that was pending in the United States District Court for the Eastern District of Texas.
- EDGAR Online (EDGR) announced a partnership with OTC Markets Group. Cos will work together to develop and distribute a number of data sets beginning in the first quarter of 2012.
- Travelport and TravelSky Technology announced an joint product development agreement focused on advanced Passenger Service Systems technology for airlines worldwide. Travelport also owns approximately 48% of Orbitz Worldwide (OWW)
- VSE Corporation's (VSEC) wholly owned subsidiary, Energetics Incorporated, has won a five-year, $5 mln contract to support the National Institute of Standards and Technology in assessing critical U.S. measurement needs.
- Kratos Defense & Security Solutions (KTOS) announced that its Herley New England subsidiary has been awarded a contract valued at ~$2.1 mln by an International customer to provide a complex integrated microwave assembly to be used in the CAPTOR Radar on the Typhoon Eurofighter.
- Wizzard Media (WZE) announced that they are nearing completion of Phase I of the due diligence process regarding the acquisition of FAB.
7:19AM Discovery Labs announced data from two scientific studies regarding the co's aerosolized KL4 surfactant program - aerosolized KL4 surfactant was well tolerated and interfaced effectively with respiratory support (DSCO) 1.80 : CO announced that data from two scientific studies regarding the Company's aerosolized KL4 surfactant program were presented at the 2011 European Society for Paediatric Research Annual Meeting, internationally recognized as the largest and most relevant European medical meeting dedicated to new advancements in pediatric research. Relative to control piglets on CPAP alone, treatment with either bolus or aerosolized KL4 surfactant resulted in a significant improvement in both oxygenation response & overall survival rate. Aerosolized KL4 surfactant was well tolerated and interfaced effectively with respiratory support.
7:11AM Sensata Tech reports EPS in-line, revs in-line; guides Q4 EPS below consensus, revs below consensus (ST) 30.12 : Reports Q3 (Sep) earnings of $0.50 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.50; revenues rose 23.7% year/year to $474.3 mln vs the $475.1 mln consensus. Co issues downside guidance for Q4, sees EPS of $0.46-0.50 vs. $0.52 Capital IQ Consensus Estimate; sees Q4 revs of $460-480 mln vs. $495.05 mln Capital IQ Consensus Estimate. The co's cash conversion cycle, defined as days sales outstanding plus days on hand inventory less days payable outstanding, was 56.2 days at the end of the third quarter compared to 56.3 days at June 30, 2011.
7:05AM U.S. Bancorp beats by $0.02, beats on revs (USB) 24.48 : Reports Q3 (Sep) earnings of $0.64 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.62; revenues rose 4.5% year/year to $4.8 bln vs the $4.74 bln consensus. Reports new lending activity of $59.5 billion (12.9% increase on a linked quarter basis) during the third quarter; Growth in average total loans of 5.0% (4.5% excluding acquisitions) over the third quarter of 2010. Net charge-offs declined 10.4% from the second quarter of 2011 Nonperforming assets (excluding covered assets) decreased 6.9% from the second quarter of 2011 (6.7% including covered assets). Allowance to nonperforming assets (excluding covered assets) was 166% at September 30, 2011, compared with 159% at June 30, 2011, and 153% at September 30, 2010. Co's Tier 1 common equity ratio of 8.5% Tier 1 capital ratio of 10.8%; Total risk based capital ratio of 13.5%; Tier 1 common ratio of 8.2% under anticipated Basel III guidelines; Additionally, co repurchased 13 mln shares of common stock during the current quarter.
7:03AM Apollo Group beats by $0.08, beats on revs; guides FY12 revs in-line (APOL) 43.33 : Reports Q4 (Aug) earnings of $1.02 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus Estimate of $0.94; revenues fell 10.9% year/year to $1.12 bln vs the $1.1 bln consensus. Co issues in-line guidance for FY12, sees FY12 revs of $4.1-4.3 bln vs. $4.2 bln Capital IQ Consensus Estimate. Co cited lower enrollments at University of Phoenix, partially offset by selective tuition price and other fee changes and improving rates of student retention. For the quarter, University of Phoenix Degreed Enrollment decreased 19.1% to 380,800 compared with the prior year fourth quarter, primarily due to decreases in New Degreed Enrollment in recent quarters, including a 33.5% decrease in New Degreed Enrollment in the fourth quarter of fiscal 2011 compared with the prior year period. The Company believes the decline in New Degreed Enrollment was primarily the result of the operational changes and initiatives it has implemented to more effectively support students and improve educational outcomes, as well as the broader competitive environment. The operational changes included the manner in which admissions personnel and other employees are evaluated and compensated, the full implementation of University Orientation, and the Company's efforts to more effectively identify students who have a greater likelihood to succeed in University of Phoenix's educational programs.
7:02AM Mylan Labs announces Femcon Fe settlement agreement (MYL) 17.55 : Co announced that it, along with Famy Care, has entered into a settlement agreement with Warner Chilcott (WCRX) resolving litigation related to Femcon Fe Chewable Tablets. Pursuant to the settlement agreement, the pending litigation has been dismissed and Mylan may begin to market and sell a generic version of Femcon Fe upon receipt of final product approval from the FDA. Additional details of the settlement are confidential, and the agreement itself is subject to review by the U.S. Department of Justice and the Federal Trade Commission.
7:02AM ON Semiconductor updates impact of Thailand flood; co believes that its SANYO Semiconductor division's Thailand operations have been severely damaged by the flood (ONNN) 8.04 : Co believes that its SANYO Semiconductor division's Thailand operations, including buildings and equipment, located at the Rojana Industrial Park in Ayutthaya, Thailand have been severely damaged by the flood. Operations at this location remain suspended. Co has not yet been able to enter its site and buildings and is uncertain as to when it will be able to gain access, due to the extensive flooding. Based on currently available information and given the extent of the potential damage, the company believes it will be unable to re-start probe, assembly and test operations at the Rojana Industrial Park for an indefinite period. The future of this site will be evaluated once the company is able to gain access to its facility.
7:00AM ATMI beats by $0.01, misses on revs (ATMI) 18.47 : Reports Q3 (Sep) earnings of $0.25 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.24; revenues were unchanged from the year-ago period at $95 mln.
6:52AM Comerica misses by $0.04 (CMA) 25.85 : Reports Q3 (Sep) earnings of $0.51 per share, $0.04 worse than the Capital IQ Consensus Estimate of $0.55. Net interest income $423 mln; NIM 3.18% vs. 3.14% QoQ and 3.23% YoY. Period-end total loans increased $2.0 bln, primarily due to the addition of Sterling. The net interest margin of 3.18% increased four bps QoQ, primarily resulting from the acquisition of the Sterling loan portfolio. Accretion of the purchase discount on the acquired Sterling loan portfolio increased the net interest margin by 20 bps, partially offset by the impact of an increase in excess liquidity (-8 bps) and accelerated premium amortization due to increased prepayment activity on mortgage-backed investment securities (-6 bps). Credit quality continued to improve in Q3. Comerica repurchased 2.1 mln shares of common stock under the share repurchase program in Q3, compared to 400,000 shares repurchased in 1H11.
Q4 outlook (compared QoQ): A low-single digit increase in average total loans, largely reflecting the impact of one additional month of Sterling. Period-end loans are expected to be relatively stable. Loans in the National Dealer Services business line are expected to grow, Mortgage Banker Finance loan growth is expected to moderate, and loans in the Commercial Real Estate business line are expected to continue to decrease. An average net interest margin of about 3.15%, reflecting the benefit from an increase in mortgage-backed investment securities, one additional month of Sterling and lower excess liquidity, offset by a reduction in the accretion of the purchase discount on the acquired Sterling loan portfolio ($15 mln to $20 mln, compared to $27 mln in the third quarter 2011). Net credit-related charge-offs between $65 mln and $75 mln for the fourth quarter 2011. Excluding merger and restructuring charges, a QoQ low- to mid-single digit increase in noninterest expenses, primarily due to one additional month of Sterling expenses in Q4.
Q4 outlook (compared QoQ): A low-single digit increase in average total loans, largely reflecting the impact of one additional month of Sterling. Period-end loans are expected to be relatively stable. Loans in the National Dealer Services business line are expected to grow, Mortgage Banker Finance loan growth is expected to moderate, and loans in the Commercial Real Estate business line are expected to continue to decrease. An average net interest margin of about 3.15%, reflecting the benefit from an increase in mortgage-backed investment securities, one additional month of Sterling and lower excess liquidity, offset by a reduction in the accretion of the purchase discount on the acquired Sterling loan portfolio ($15 mln to $20 mln, compared to $27 mln in the third quarter 2011). Net credit-related charge-offs between $65 mln and $75 mln for the fourth quarter 2011. Excluding merger and restructuring charges, a QoQ low- to mid-single digit increase in noninterest expenses, primarily due to one additional month of Sterling expenses in Q4.
6:43AM PNC beats by $0.05, reports revs in-line (PNC) 51.22 : Reports Q3 (Sep) earnings of $1.55 per share, $0.05 better than the Capital IQ Consensus Estimate of $1.50; revenues fell 1.5% year/year to $3.54 bln vs the $3.56 bln consensus. Strong third quarter results reflected growth in customers, loans and deposits with improving overall credit quality and disciplined expense management. Net interest income of $2.2 billion for the third quarter increased $25 million compared with second quarter 2011. Noninterest income of $1.4 billion for the third quarter declined $83 million from the second quarter primarily due to lower asset valuations. Commercial mortgage servicing rights values were reduced $105 million in the third quarter of 2011. The provision for credit losses declined to $261 million for the third quarter compared with $280 million in the second quarter from improving credit quality. Total loans of $155 billion at September 30, 2011 grew $4.2 billion compared with June 30, 2011. Commercial lending grew $3.7 billion and consumer lending increased $.5 billion. Loans and commitments originated and renewed totaled approximately $39 billion in the third quarter, including $1 billion of small business loans. Flagstar acq expected to close in Dec; RBC in March '12. The Tier 1 common capital ratio was an estimated 10.5 percent at both September 30, 2011 and June 30, 2011 and 9.6 percent at September 30, 2010.
6:42AM VMware and Telefonica (TEF) announced last night a strategic partnership to deliver VMW Horizon Mobile enabling TEF customers to choose a single Android device for work and personal use (VMW) 96.88 :
6:38AM BlackRock beats by $0.13, misses on revs (BLK) 16.91 : Reports Q3 (Sep) earnings of $2.83 per share, $0.13 better than the Capital IQ Consensus Estimate of $2.70. Assets Under Management declined 3% YoY and 9% sequentially to $3.345 trln at September 30, 2011, driven largely by $303.9 bln of market-related declines across products. Co reports Operating Margin of 34.9% (40.1% as adjusted) for Third Quarter 2011.
6:38AM Aircastle and Southern Air announcd last night 747-400SF freighter leases (AYR) 11.04 : Co announced last night that they have entered into long-term leases under which Southern Air will utilize two 747-400SF aircraft owned by Aircastle. The aircraft are expected to enter commercial service during the first quarter of 2012, advancing Southern Air's fleet renewal and business expansion program.
6:35AM Knight Capital Group announced average daily U.S. equities dollar volume traded in September 2011 was $32.1 bln, down ~ 22.4% MoM and up ~ 39.7% YoY (KCG) 13.92 : Co recorded average daily equities share volume in September 2011 of 190.3 mln , down ~16.0% from MoM, and up ~ 33.4% YoY. Hotspot FX recorded average daily notional dollar value traded in September 2011 of $68.1 bln, up ~ 8.1% MoM, and up ~101.8% YoY.
6:34AM Textron beats by $0.14, misses on revs; raises FY11 EPS, in-line with consensus (TXT) 18.66 : Reports Q3 (Sep) earnings of $0.45 per share, $0.14 better than the Capital IQ Consensus Estimate of $0.31; revenues rose 13.5% year/year to $2.81 bln vs the $2.85 bln consensus. Co issues in-line guidance for FY11, sees EPS of $1.05-1.15 vs. $1.10 Capital IQ Consensus Estimate. The co's previous guidance of $0.90-1.00, assumed $0.24 per share in special charges and an offsetting benefit from lower share count of $0.04 per share. Co expects to record an approximate $0.08 per share special charge in the fourth quarter as a result of the tender, with an offsetting benefit of about $0.02 per share due to the impact of a lower diluted share count. The co also confirmed its outlook for manufacturing cash flow from continuing operations before pension contributions of $800-850 mln.
6:33AM STAAR Surgical reports progress on Japan application for approval of Visian Toric Implantable Collamer Lens (STAA) 8.94 : Co announced that it has received notice from the Pharmaceuticals and Medical Device Agency in Japan that the co's Toric ICL application will not need to go before the Approval Committee. In addition the PMDA and Japan's Ministry of Health, Labour and Welfare have permitted co to add the clinical data collection on the Toric ICL Post Market Studies to the current PMS protocols underway for the Visian ICL. Co stated, "This is an extremely exciting development for STAAR because it brings us much closer to final approval of our Toric ICL in Japan."
6:32AM Rockwood Holdings reports EPS in-line, misses on revs (ROC) 43.45 : Reports Q3 (Sep) earnings of $1.06 per share, excluding items, in-line with the Capital IQ Consensus Estimate consensus of $1.06; revenues rose 17.4% year/year to $940.9 mln vs the $965.2 mln consensus. "Continued strong volume growth in our lithium, surface treatment and clay-based additives businesses, combined with improved pricing in titanium dioxide and lithium, enabled us to more than double our adjusted EPS for the quarter. All of our business units have improved performance versus last year, and we generated a very strong free cash flow of $135 million for the third quarter."
6:31AM Delcath announces completion of regulatory notification process for CHEMOSAT in New Zealand (DCTH) 3.44 : Co announced that they have completed the product notification process for the Delcath Hepatic CHEMOSAT Delivery system with the Medicines and Medical Device Safety Authority in New Zealand. Completion of this process permits Delcath to legally supply and distribute CHEMOSAT to the New Zealand market. The co expects to begin supplying the system through an authorized distributor in 2012.
6:28AM SABMiller plc & Anadolu Efes agree to strategic alliance (SBMRY.PK) 35.87 : SABMiller and Anadolu Efes announced their intention to form a strategic alliance in terms of which Anadolu Efes will be the vehicle for both groups' investments in the Territory and SABMiller will transfer its beer businesses in Russia and Ukraine to Anadolu Efes. Anadolu Efes will issue ~142 mln new Anadolu Efes shares to SABMiller, representing a 24% equity stake post capitalisation in the enlarged Anadolu Efes. Following the capital increase, the Anadolu Group will control 42.81% of Anadolu Efes's enlarged share capital. SABMiller to transfer its Russian and Ukrainian beer businesses to Anadolu Efes.
6:16AM WNS beats by $0.02, reports revs in-line (WNS) 11.74 : Reports Q2 (Sep) earnings of $0.26 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.24; revenues rose 7.6% year/year to $100.2 mln vs the $99.3 mln consensus.
6:09AM First Cash beats by $0.04, beats on revs; guides FY11 EPS in-line (FCFS) 43.36 : Reports Q3 (Sep) earnings of $0.59 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.55; revenues rose 25.7% year/year to $133.4 mln vs the $131.2 mln consensus. Co issues in-line guidance for FY11, sees EPS of $2.23-2.25 vs. $2.22 Capital IQ Consensus Estimate and above prior guidance of $2.16-2.20. Same-store revenue increased 17% for both the third quarter and year-to-date periods. A total of 21 pawn stores were added during the third quarter of 2011. The majority of 2011 revenues will be derived from pawn operations, with only 9% to 10% of revenues expected to be from U.S. consumer loan and credit services operations.
6:03AM Agnico-Eagle Mines's Goldex mine to suspend production during investigation and remediation of water inflow and ground stability issue; book value of Goldex to be written off; will total $1.00/share after tax (AEM) 57.10 : Co announced that it is suspending mining operations and gold production at its Goldex mine in Val d'Or, Quebec effective immediately. This decision follows the receipt of an opinion from a second rock mechanics consulting firm which recommended that underground mining operations be halted until the situation is investigated further. It is estimated that the mill will continue to process feed from the remaining surface stockpile until the end of October. As a result, AEM will write off its investment in Goldex. It is expected that this will total ~$260 million (or ~$170 million after tax, or $1.00/share) and will occur in the Q3 2011 financial results, scheduled for release on October 26. Additionally, the Company expects to make an accounting provision for a portion of the anticipated costs of remediation in the third quarter of 2011.
6:00AM Acacia Research Subsidiary enters into license agreement With IBM (IBM) (ACTG) 38.99 : Co announced that its NetMonitor has entered into a license agreement with International Business Machines (IBM) regarding patents relating to network monitoring techniques. The license agreement resolves litigation that was pending in the District of Delaware.
5:22AM Alcatel-Lucent: Permira Funds make binding offer to acquire Genesys from co (ALU) 2.94 : Permira announces that a company owned by the Permira funds has made a binding offer to acquire Genesys, a global expert in contact center technology software, from ALU in a transaction valued at $1.5 bln . Technology Crossover Ventures and certain co-investors of the Permira funds will also participate in the transaction.
3:10AM Teva Pharma reports investigational laquinimod demonstrates its potential as a new oral treatment for RRMS (TEVA) 39.45 : Co presents Phase III clinical and pre-clinical data, which collectively demonstrate that once-daily oral laquinimod modulates the pathological processes of multiple sclerosis to impact disease activity, disability progression and brain volume loss. Findings from the second Phase III study, BRAVO, showed that at 24-months, the primary endpoint of reduction in annualized relapse rates did not reach statistical significance; however, after applying a pre-specified sensitivity analysis to correct for meaningful imbalances in baseline characteristics between treatment groups, laquinimod significantly reduced ARR (21.3%). Laquinimod also demonstrated a significant reduction in the risk of disability progression as measured by the Expanded Disability Status Scale (33.5%) and in MRI-measured brain volume loss (27.5%). The safety and tolerability profile of laquinimod was favorable. New exploratory analyses from ALLEGRO, the first Phase III study in the laquinimod clinical development program, demonstrated that laquinimod had an effect on the rate of severe relapses, showing a 38% reduction in the annualized rate of relapses requiring hospitalization and a 27% reduction in those requiring intravenous steroids. Treatment with laquinimod was also associated with a 36% reduction in the risk for three month confirmed EDSS progression and a 48 percent reduction in the risk for six month confirmed EDSS progression. Additionally, laquinimod had a positive impact on patient-reported fatigue and cognitive functioning, as assessed by the Modified Fatigue Impact Scale and the short-form general health survey.
2:27AM On The Wires (WIRES) :
- MaxLinear (MXL) announced that ARRIS (ARRS) has selected the MxL261 dual-wideband tuner + quad demodulator for a new family of DOCSIS 3.0 consumer premise equipment.
- Fluor Corporation (FLR) announced that its Fluor Offshore Solutions unit was awarded a front-end engineering and design contract by Abu Dhabi Marine Operating Company for new offshore facilities located at the Nasr Field ~30 kilometers northeast of Umm Shaif Super Complex in Abu Dhabi, United Arab Emirates. Fluor booked the undisclosed contract value in the third quarter of 2011.
- VMware (VMW) announced that SAP has selected the VMware cloud infrastructure and management platform for one of its internal global IT modernization and reorganization projects designed to more effectively support business demand.
- SAP (SAP) announced the launch of SAP BusinessObjects Business Intelligence OnDemand, powered by SAP HANA. The solution allows companies to quickly and cost-effectively perform detailed real-time analysis of any data, including data from on-demand solutions.
- iPass (IPAS) that T-Mobile USA selected the iPass Open Mobile Platform and the iPass Mobile Network as key pieces in their new T-Mobile Global Corporate Access solution for multinational corporations, U.S. enterprises, and government agencies.
2:10AM Biogen Idec and Elan (ELN) presents data about early use and long-term benefit of TYSABRI (BIIB) 102.64 : Biogen (BIIB) and Elan (ELN) announce 28 company-supported TYSABRI presentations. Key data indicated patients on TYSABRI experienced reduced annualized relapse rates, particularly in those treated with TYSABRI early in the course of their disease. Data also indicated a long-term benefit for patients who had achieved freedom from disease activity early in their treatment course. Data from a separate study showed TYSABRI-treated patients experienced improved incontinence-related quality of life. Additional data sets were presented further supporting Biogen Idec's and Elan's efforts to stratify the risk of progressive multifocal leukoencephalopathy in TYSABRI-treated patients.
1:01AM Monsanto says DuPont (DD) lawsuit is baseless, without merit (MON) 74.53 : Co issues the following statement: "A review of the lawsuit filed in U.S. federal court in the Southern District of Iowa indicates that DuPont's claim pertains to defoliating corn plants with Paraquat or Roundup. This approach is not used in any Monsanto production fields. We don't believe this lawsuit has any practical effect on our current or future business; however we take all lawsuits seriously. Importantly, this filing appears to be another in a series of frivolous claims initiated by DuPont against our business and aimed at distracting us from our mission of investing in and delivering new product offerings to farmers around the world. We will defend our business against this latest attack."
1:01AM SinoTech will be suspended from the NASDAQ Stock Market effective October 19 (CTE) 2.35 : As a result of the suspension, co may be eligible to resume trading in the over-the-counter market. A final determination on the Company's listing will be made after a hearing and Panel decision. Co has been subject to a trading halt since August 16, 2011.
1:01AM ZELTIQ Aesthetics prices 7 mln share IPO at $13 per share; below the expected range of $14-16 (ZLTQ) : 